Sensex drops by 74 pts at opening session

Published: Wednesday, April 9, 2008, 12:35 [IST]

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Mumbai, Apr 9: The 30 scrips of BSE sensitive index today resumed softer at 15,512.70 points with a modest loss of 74.92 from it's last close of 15,5587.62 points on profit booking by FIIs induced by weaker advice from Asian bources.

The selective heavy stocks edged were lower at the onset of trading session tracking subdued-to-weak trend in Asian markets but it soon recovered from its lows and moved into the green. FMCG and oil&gas stocks declined. Capital goods stocks rose on reports of Finance Minister P Chidambaram's meeting with representatives from auto and capital goods industries to discuss industrial slowdown after recent weak Index of Industrial Production (IIP) numbers. HDFC and Larsen&Toubro were major gainers from Sensex pack. The market breadth was positive.

Many leading Sensex stocks have pulled back and recovered early trade losses with buying support from capital goods, power, metal, oil and banking stocks. Midcaps and smallcaps were trading higher with a gain of over one per cent.

Later, the 30-share BSE Sensex was up 89.92 points or 0.58 per cent at 15,677.54. At the day's low of 15,464.72, Sensex lost 122.9 points in early trade. At the day's high of 15,668.49, Sensex gained 80.87 points in early trade.

The broader-based S&P CNX Nifty index of NSE resumed lower by 1.60 points at 4707.05 points from it's last close of 4709.65 points, later it was up by 9.15 points or 0.19 per cent at 4,718.80.

About 1564 shares have advanced, 1052 shares declined, and 456 shares are unchanged during the mid-morning session.

Orchid Chemical, Reliance Capital, Reliance Industries and Reliance Power were most active shares.

Capital goods stocks witnessed buying interest after hitting in the last few sessions. The BSE Capital Goods Index was up by 1.6 per cent due to buying in L&T, BHEL and Thermax.

Power stocks have charged up today. The BSE Power Index jumped 1.4 per cent on the back of support from Tata Power, Reliance Energy, Reliance Power and NTPC.

Metal stocks are also on buying radar; SAIL and Tata Steel gained.

The BSE Metal Index was up by 1.16 per cent.

FMCG stocks declined. ITC was down by 1.18 per cent to Rs 205.85, followed by Nestle India by 1.14 per cent to Rs 1,539.90 and Hindustan Unilever by 0.81 per cent to Rs 245.90 edged lower.

Oil&gas stocks fell. ONGC was down by 0.87 per cent to Rs 1,002.50, Cairn India eased by 0.51 per cent to Rs 226.10 and GAIL India came down by 0.61 per cent to Rs 426.65 edged lower.

However India's largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose by 0.62 per cent to Rs 2,395.90.

Grasim Industries was down by 2.28 per cent to Rs 2,502.10 followed by Satyam Computer Services by 1.68 per cent to Rs 421.90, Maruti Suzuki India by 1.46 per cent to Rs 733.35, Tata Consultancy Services by 1.05 per cent to Rs 876, Bharti Airtel by 1.74 per cent to Rs 820 edged lower from the Sensex pack.

Larsen&Toubro was up by 1.62 per cent to Rs 2,621, Ranbaxy Laboratories gained by 1.43 per cent to Rs 477.50, Tata Steel rose by 1.57 per cent to Rs 666.60, Bharat Heavy Electricals was up by 1.42 per cent to Rs 1,738.90, Reliance Energy gained by 0.91 per cent to Rs 1,160.90 edged higher from Sensex pack.

India's largest commercial bank State Bank of India rose by 0.5 per cent to Rs 1,684.90. It has reportedly shortlisted three potential partners, including Insurance Australia Group, for a general insurance venture. The other two shortlisted partners are a German firm and a US-based firm, the reports suggested, brokers added.